SOL soars 19.37% after Solana-powered exchange raises $7.7M in seed fund

SOL soars 19.37% after Solana-powered exchange raises $7.7M in seed fund
Image by Kris from Pixabay

Key takeaways

  • Solana announced a seed funding round of $7.7 million for Saber
  • Saber climbs the leaderboard among Solana projects by TVL
  • Meanwhile, SOL fluctuates in a falling wedge, awaiting a bullish breakout

YEREVAN (CoinChapter.com) – Solana-based Saber will expand its talent and partnerships upon receiving seed funding. Meanwhile, SOL price expects a bullish wedge breakout.

Who is funding Saber?

Notable investors have put their trust in the development of Solana’s Saber platform in a $7.7 million seed funding round. Race Capital led the fundraiser, followed by Chamath Palihapitiya’s Social Capital, Jump Capital, Multicoin Capital, etc. 

Related: Polkadot’s DOT among top 5 held crypto-assets across hedge funds, research shows

Race Capital has invested in significant crypto and non-crypto projects such as Binance, Slack, and FTX in their early stages. So, the interest of investors alike reflects market optimism.

Saber co-founder and CEO Dylan Macaliano shared that they would direct the funding toward expanding their talent, improving marketing and business development, as well as product development.

Solana as the host cross-chain exchange

The announcement on July 27 followed a stagnation of the Solana digital currency after a brief bounce off the $23 support. After the news broke, the price soared in an intraday increase of 12% on July 29. The high-low spike inched 19%.

At the time of press, SOL is hovering around $31, which is quite a jump (33%) since the bounce. Yet, the increase may not necessarily be due to the Saber funding, as Solana has multiple project developments underway.

Solana is a delegated-proof-of-stake (dPoS) blockchain ecosystem that hosts cross-chain exchanges. The unique proposition of Solana is allegedly the increased speed and security due to the Proof-of-History protocol for timestamping transactions. 

As opposed to Bitcoin that allocates timestamps to grouped transactions in blocks, Solana-based nodes have continuous timing.

As the highest-ranking altcoin in terms of Year-to-Date (YTD) around 1500%, SOL hopes to compete with Ethereum in the future.

Related: Ethereum reclaims $2.4K in days leading up to London hard fork

Saber exchange based on Solana allows stablecoin and wrapped coin swaps and also yield-earning deposits for its investors. The dapp is among the top-runners by total value locked (TVL) on Solana, hoping to secure the lead with more partnerships.

Saber TVL growth since launch in July.
Saber TVL growth since its launch in July. Source: Solana daily on Twitter

SOL Technicals

The recent jump in the SOL/USD pair further formed a falling wedge pattern that started in June, despite the recent rally among other cryptocurrencies. The downward trend is slowly losing momentum to result in a bullish breakout, as the pattern predicts. 

Nonetheless, the wedge band is not too narrow, so the breakout is less likely to happen soon. Instead, a gradual drop may follow the latest jump and conclude in an upswing in mid-August at this rate. 

Falling wedge in Solana price.
Falling wedge in Solana price. Source: TradingView.com

Besides fighting the resistance of the wedge’s upper bound, SOL has been resting on another support level at $33.31. After a confluence of these lines on July 24, the price dropped. 

Such downturns happen when investors predict that the resistance has conquered the support, and thus, the price is peaking. Therefore, they increase the selling pressure. 

The strength of this resistance may persist further, but a bullish breakout in the Solana price is a plausible scenario as the wedge converges.

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